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Call Updates

Komag - KOMG - close: 43.24 chg: +0.16 stop: 41.99

We were surprised to see that KOMG and the storage-device sector in general lagged behind the bounce in tech stocks. Shares of KOMG spent the day consolidating sideways. We remain on the sidelines with a trigger to buy calls at $46.11.

Picked on May xx at $ xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 1.2 million

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Omnicom - OMC - close: 94.08 chg: +1.06 stop: 90.64

Thursday's widespread market bounce helped fuel the breakout in shares of OMC and the stock added another 1.1% on above average volume. We do not see any changes from our previous updates. Our target is the $97.50-98.00 range.

Picked on May 15 at $ 92.05
Change since picked: + 2.03
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 1.1 million
 

Put Updates

Amgen Inc. - AMGN - close: 68.16 chg: +0.09 stop: 70.01

The BTK biotech index produced a pretty strong rebound given the market's bounce today. The BTK added 1.89% and looks poised to continue higher tomorrow. Thankfully shares of AMGN under performed the market and the BTK biotech index with a minor 9-cent gain but shares of AMGN also look poised to move higher tomorrow. We are not suggesting new bearish plays at this time. Considering AMGN's long-term bearish trend of lower highs we're watching for the simple 50-dma to act as overhead resistance.

Picked on May 23 at $ 66.85
Change since picked: + 1.31
Earnings Date 07/18/06 (unconfirmed)
Average Daily Volume = 8.8 million

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Apollo Group - APOL - close: 51.27 chg: +0.35 stop: 54.45

APOL is still bouncing from the $50.00 level. We are looking for the $52.00 level, which is broken support, to act as overhead resistance. Our target is the $47.75-47.50 range near its early March lows.

Picked on May 17 at $ 51.75
Change since picked: - 0.48
Earnings Date 06/20/06 (unconfirmed)
Average Daily Volume = 2.1 million

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Franklin Res. - BEN - close: 88.77 chg: +1.92 close: 92.55

The broker-dealer/investment-related stocks finally got a big bounce with the XBD index adding 2.3%. Shares of BEN followed higher with a 2.2% gain. Overall the stock remains in a bearish pattern of lower highs but shares could bounce toward the $90-92 range and still be inside its bearish pattern. We are not suggesting new positions and more conservative traders may want to tighten their stops as the bounce in the XBD index could be just getting started.

Picked on May 14 at $ 89.30
Change since picked: - 0.53
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume = 1.1 million

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Burlington NorSantaFe - BNI - close: 76.45 chg: +1.95 stop: 77.51

The transport stocks produced a decent rally today in spite of another rebound in crude oil to over $71.00 a barrel. Shares of BNI lead the charge higher with a 2.6% gain. The stock closed above its simple 10-dma and looks poised to move higher. More conservative traders may want to exit early right now to minimize any losses. Aggressive traders may want to widen their stop loss to over $80.00, which would appear to line up with BNI's six-week descending channel. We are not suggesting new plays and if the transports rally again tomorrow odds are good we'll be stopped out.

Picked on May 23 at $ 75.06
Change since picked: + 1.39
Earnings Date 07/25/06 (unconfirmed)
Average Daily Volume = 2.0 million

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IDEXX Labs - IDXX - close: 75.97 chg: -0.36 stop: 77.05

IDXX continues to under perform and the stock lost another 0.4% today. Shares are coiling between support near $75.00 and its trend of lower highs. The tighter the coil gets the closer IDXX comes to a breakout - a breakout that could go either direction. We are not suggesting new positions but more conservative traders may want to tighten their stop loss closer to the simple 10-dma, which has been consistent resistance for the past couple of weeks. Our target is the $74.00-73.50 just above the simple 200-dma. FYI: the P&F chart points to a $64 target.

Picked on May 11 at $ 77.93
Change since picked: - 1.96
Earnings Date 04/28/06 (confirmed)
Average Daily Volume = 125 thousand

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Ipsco Inc. - IPS - close: 93.20 chg: +3.65 stop: 97.55

Steel and metal-related stocks produced a pretty strong bounce today. IPS added just over 4%. One thing we noticed was that volume came in a lot less than the recent sell-off. Odds look good that tomorrow shares of IPS will hit the 10-dma (94.50) or the $95.00 level. We are not suggesting new plays. This remains an aggressive, high-risk play. Looking at the strength we see in other steel-related stocks it might be smart to just abandon our IPS puts right here. It's something to think about. Our target is the $85.50-84.50 range.

Picked on May 18 at $ 93.95
Change since picked: - 0.75
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume = 459 thousand

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3M Co. - MMM - close: 83.26 chg: -0.56 stop: 85.01

Considering the DJIA's rebound today we're surprised that MMM, a Dow-component, fared so poorly. We are not suggesting new positions at this time. Our target is the $80.25-80.00 range. More conservative types might want to think about a stop loss near $84.25 to minimize their risk.

Picked on May 23 at $ 83.44
Change since picked: - 0.18
Earnings Date 07/21/06 (unconfirmed)
Average Daily Volume = 3.2 million

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SanDisk - SNDK - close: 58.84 chg: -0.15 stop: 63.05

SNDK is still under performing the market, which is good news for our put play, but we don't know how long it will last. If this market rebound has any legs then we'd expect shares of SNDK to eventually join the rally. We'd still consider put positions with SNDK under $60.00 but you might want to use a tighter stop loss. We're thinking about putting our stop near $61.50. Checking the news we did not see any headlines from SNDK's shareholder meeting that was due to take place today.

Picked on May 23 at $ 58.98
Change since picked: - 0.14
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 11.1 million
 

Strangle Updates

None
 

Dropped Calls

None
 

Dropped Puts

Nucor - NUE - close: 108.92 chg: +4.37 stop: 108.41

The rebound in NUE was pretty strong. The stock broke out over its 10-dma and 50-dma in the same session. Our stop loss was at $108.41 so the play is now closed. FYI: NUE is due to split 2-for-1 on June 1st.

Picked on May 17 at $105.40
Change since picked: + 3.52
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume = 2.5 million
 

Dropped Strangles

None
 

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